---
title: "What does Performance bank guarantee (PBG) mean | SSL"
description: "A bank guarantee that a contractor gives the buyer after award, which the buyer can encash if the contractor fails to perform. Standard in Indian"
url: https://safeandsecure.in/answers/what-does-performance-bank-guarantee-pbg-mean-in-logistics/
canonical: https://safeandsecure.in/answers/what-does-performance-bank-guarantee-pbg-mean-in-logistics/
updated: 2026-09-29
lang: en-IN
publisher: Safe & Secure Logistics Private Limited
---

[Logistics terms](https://safeandsecure.in/answers/glossary/) · Logistics terms

# What does Performance bank guarantee (PBG) mean in logistics?

Short answer

A bank guarantee that a contractor gives the buyer after award, which the buyer can encash if the contractor fails to perform.

Standard in Indian government, PSU and many corporate logistics contracts. The percentage and validity are set in the tender under the General Financial Rules, 2017 or the buyer’s own policy. Ask our desk how this applies to your consignment.

Period: General definition. Data as of 29 Sep 2026. [How we count](https://safeandsecure.in/facts/)

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## The numbers behind this answer

**Also called**: PBG, performance security

**Category**: Contracts & pricing

**Related terms**: Earnest money deposit (EMD), Work order, Government e-Marketplace (GeM), Central Public Procurement Portal (CPPP)

## Sources

1. [SSL logistics glossary](https://safeandsecure.in/glossary/#pbg)

Period: General definition. Data as of 29 Sep 2026.

## Related questions

- [What does Central Public Procurement Portal (CPPP) mean in logistics?](https://safeandsecure.in/answers/what-does-central-public-procurement-portal-cppp-mean-in-logistics/)
- [What does Earnest money deposit (EMD) mean in logistics?](https://safeandsecure.in/answers/what-does-earnest-money-deposit-emd-mean-in-logistics/)
- [What does Work order mean in logistics?](https://safeandsecure.in/answers/what-does-work-order-mean-in-logistics/)
- [What does E-auction (reverse auction) mean in logistics?](https://safeandsecure.in/answers/what-does-e-auction-reverse-auction-mean-in-logistics/)
- [What does Government e-Marketplace (GeM) mean in logistics?](https://safeandsecure.in/answers/what-does-government-e-marketplace-gem-mean-in-logistics/)
- [What does MSME / Udyam registration mean in logistics?](https://safeandsecure.in/answers/what-does-msme-udyam-registration-mean-in-logistics/)

## On this site

- [Logistics glossary](https://safeandsecure.in/glossary/#pbg)

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---

Source: https://safeandsecure.in/answers/what-does-performance-bank-guarantee-pbg-mean-in-logistics/ (the HTML page is the record; this markdown twin was generated from it on 2026-09-29). Publisher: Safe & Secure Logistics Private Limited, https://safeandsecure.in/. Figures and their periods: https://safeandsecure.in/facts/